What is Startup Punjab Scheme

The economy of a state is strongly dependent on creativity and entrepreneurship. Punjab has a reputation as a leader in overall prosperity and development. The state has excelled in a variety of fields, including industry, agriculture, education, health, literature, sports, the arts, and culture. Punjab is equipped with world-class infrastructure, human resources, and innovative and forward-thinking individuals that strive to turn every chance into a thriving success.

Furthermore, the state has identified start-ups and entrepreneurship as important pillars of economic development, job creation, productivity, and wealth generation. The government launched the Startup Punjab and Entrepreneurship Development Policy, which is based on the Government of India’s Startup Action Plan and Standup India program. As well as the Punjab Government’s Industrial and Business Development Policy for 2017.

What are the advantages of the Startup Punjab scheme?

• Eligible startups will get an annual interest subsidy of 8% of the interest rate paid.
• Loans taken from scheduled banks/financial institutions for a period of five years, with a maximum annual repayment of INR 5 lakh.
• Eligible startup units produced in the state and operating from incubators/IT parks/industrial clusters or any other notified site will be eligible for reimbursement for a one-year term. 25% of lease rental subsidies, subject to a maximum of INR 3 lakh per year.
• A seed grant of up to INR 3 lakh per startup will be provided. Concept validation, prototype development, travel expense help, field/market research, skill training, marketing, and other early-stage tasks are among the services provided. Investors will direct seed money for entrepreneurs into state incubators.

What is the Eligibility for Startup Punjab Scheme? 

1. With a prior fiscal year’s annual turnover of no more than INR 25 crore. Working on product, method, and service innovation, change, and growth, as well as determining whether the company model is scalable and has a high potential for income or employment development.
2. The dissolution or reconstruction of an existing corporation, as well as the reconstitution or demerger of an existing business, do not create the entity.
3. The corporation should not be a holding company or a subsidiary of an established business. However, a startup’s subsidiary will be exempt from this rule.

4. One must register it as a Private Limited Company under the Companies Act of 2013. Otherwise, a registered Partnership Firm as specified in Section 59 of the Partnership Act of 1932, or a Limited Liability Partnership as defined in India’s Limited Liability Partnership Act of 2008. It should be no earlier than 7 years, with a maximum of 10 years for biotechnology companies.

5. The Punjab Shops and Commercial Establishment Act of 1958 mandates the entity/company to register in Punjab.

6. The corporation plans to hire at least half of its total skilled workforce from Punjab, excluding contract workers.

What are the documents required for the Startup Punjab Yojana?

1. Passport-size photograph of the applicant
2. Academic qualifications of the applicant
3. Project Report/Business Plan
4. Birth Certificate
5. Voter ID/Ration Card
6. Caste Certificate
7. Proof of business address
8. The applicant must not be at fault in the Bank.

In the preceding list, the business plan, also known as a project report, is an important document when requesting for a bank loan. The bank utilizes this document to assess the project’s overall feasibility, risks, financial viability, and potential. As a result, a well-written and convincing project report raises the likelihood of loan acceptance. With Finline, you can create a captivating project report in less than 10 minutes. That, too, is in your language. Our reports are acknowledged by all public and private sector banks in India.